The Financial Ratio That Indicates the Degree to Which the Organization

question 34

Multiple Choice

The financial ratio that indicates the degree to which the organization uses debt or equity to finance its ongoing operations is the ________ ratio.

• A)leverage
• B)liquidity
• C)activity
• D)profit

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Definitions:

Cash Flow

The total amount of money being transferred into and out of a business, affecting its liquidity.

Consent Ability

The capability of an individual to understand and agree to the terms of services or treatment, acknowledging the implications and consequences.

Minor Child

An individual under the age of majority, as legally defined, not considered legally competent to make certain decisions.